Materia Medica Malaysiana

Be prepared to lose subsidies, Malaysians told

Malaysians must be prepared to lose subsidies gradually and pay more for fuel and certain services eventually.
Deputy Prime Minister Datuk Seri Najib Tun Razak said this was the reality as the government was losing heavily because of the fuel subsidy, escalating health costs and poor repayment of higher education loans.
However, he said any changes would have to be done gradually so as to not cause a “shock” to the people.
“We have to condition the minds of the people first before doing any review,” he said when launching the Barisan Nasional Backbenchers Club retreat attended by about 130 MPs and Senators at the Nexus Karambunai Resort here.
“These are among the financial challenges we have to deal with,” Najib said in explaining that for fuel, the government was losing RM5bil in subsidies and foregoing RM8bil to RM9bil in taxes.
Later at a press conference, Najib said that the government had no intention of completely removing the fuel subsidy but was studying how to adjust it without burdening the people.
“In any subsidy, it is the people who finally have to pay for it,” he said, adding that those who deserve the fuel subsidy would get it but abuses must be avoided.
In this regard, Najib said the Domestic Trade and Consumer Affairs Ministry had imposed a quota system for diesel retailers and the move had saved the government RM600mil, adding that the government’s policy on the matter was a right one but was not efficiently implemented.
On the health care system review, he said the government was considering a scheme that would provide quality service on a sustainable basis amid increasing costs and demands on the nation’s health care system.
“The question now is whether we can continue with the present situation or have some sort of scheme,” Najib said adding that he would explain more about the health care system review soon.